NITIN FIRE PROTECTION INDUSTRIES
I bought 500 shares of Nitin Fire at ₹27. Should I hold or exit? - Chetan Mehta
Nitin Fire Protection Industries Limited is a Mumbai headquartered company with business interest in cylinders, fire protection, detection equipment and fire fighting project-trading. The company manufacturers firefighting equipments (gas-based and water-based fire extinguishers), providing turnkey solutions and maintenance contracts for fire protection systems. On the financial front, Nitin Fire Protection Industries Ltd revenue fell sharply from ₹41.47 crore in Q4FY16 to a negative ₹173.06 crore in Q4FY17, a massive drop of 517 per cent. The company’s profits before interest, depreciation and tax (PBIDT) dropped massively by 1881 per cent to a loss of ₹77 crore in Q4FY17 on a yearly basis. The company’s profit after tax dropped by 1286 per cent to a net loss of ₹96.61 crore in Q4FY17 on a yearly basis. On an annual basis, the company’s revenue dropped by 41.62 per cent to ₹268.74 crore in FY17 from ₹460.36 crore in FY16. The company’s PBIDT also dropped from ₹38.13 crore in FY16 to a negative ₹52.26 crore in FY17, a huge decline of 237 per cent. The company posted a net loss of ₹96.42 crore in FY17 with its net profit dropping by 1872.43 per cent on a yearly basis. The price of the stock has been earthbound, while the stock does not exhibit any significant sign of recovery. We recommend the reader-investors to Exit the stock.